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Investors retreat from bond ETFs as yields rise

Both high-yield and investment-grade fund categories have seen outflows

Investors retreat from bond ETFs as yields rise

A swift rise in bond yields in 2018 has sent fixed-income investors scrambling, with major categories of bond exchange traded funds seeing steep outflows, while other groups have found favor, MarketWatchreports.

While flows into bond products remain positive overall — extending a decadelong rotation into fixed income from stocks — investors have retreated from notable categories, a sign they believe yields could continue rising, which would mean further dterioration in the funds, as prices and yields move inversely to each other.

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